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Running head:NOT YOUR FATHERSNPO
This Is Not Your FathersNPO:
A Study on how Non-Profit, Charitable, and Non-Government Organizations are using
Technology to Raise Money and/or Awareness of Issues
Karl P. Marten
Student ID 3115283
April 3, 2014
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This Is Not Your Fathers NPO:
A Study on how Non-Profit, Charitable, and Non-Government Organizations are using
Technology to Raise Money and/or Awareness of Issues
Introduction
Do you remember the 1988 Oldsmobile ad featuring William Shatner and his daughter?
(Glasser, 2008) It was part of an advertising campaign Oldsmobile ran to try and reinvent its
image and make it appealing to a new generation, highlighting the new technology in their
vehicles. Non-profit organizations (NPOs), charities, and other non-government organizations
(NGOs) likewise are using new technology to try and reinvent [modernize] themselves to make
them relevant in todays world and to raise money and/or awareness of issues.
A Changing World / New Technologies
The non-profit sector has always been considered to be the poor boy of the three sectors
(Government, Business and Non-Profit); a technological backwater of sorts. A recent study by
John Hopkins University has found this assumption to be, for the most part, false (Geller,
Abramson, & de Leon, 2010). The three main findings of this study show that the non-profit
sector rely on a range of current information technologies for both administrative functions and
program and service delivery but they are not content with the extent of technological integration
in their program and service delivery; lack of funding, time, and expertise are their biggest
barriers.
Back Office (Administrative) Software
Almost all of the respondents to the Hopkins study indicated they used information
technology (IT) for their accounting and financial matters. A large percentage also indicated that
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they used IT for communicating externally and internally (email, etc.), tracking of clients,
customers or patrons, and for general office administration.
Figure 1: Non-profit use of information technology for program and service delivery activities
Back Office Software, for our purposes, encompasses a large variety of software;
examples would be the Microsoft Office Suite, which provides an email client (in some
versions), a word processing program, a spreadsheet and presentation software; dedicated
financial software such as Intuits QuickBooks; or specific customer relationship management
(CRM) programs such as CRM software from Sumac corporation.
Microsofts Office suite is probably the best-known office productivity software, although
there are many low-cost and no-cost alternatives. Most recently, back office software has
Source: The John Hopkns Non-profit Listening Post Project Information Technology Sounding, 2009
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migrated to the cloud1. Google offers its Goggle Docs and Microsoft offers its productivity
software as Office 365. These programs are offered either as free or at a deep discount to
qualifying non-profit organizations (Microsoft Corporation, 2014) (Google, 2014).
This technology is used by non-profits to raise money and / or increase awareness of their
issues by creating:
Donor, member, client, and volunteer databases;
Office tools for scheduling, activities calendars, registration, and record keeping;
Online outcomes database/reporting capabilities for fundraising and grant writing
purposes;
Tools for streamlining communication among multiple parties. (Jaskyte, 2012)
Many organizations start with the basic office software, but as their needs grow, and they
become more technologically adept, a number of organizations opt for specialized CRM
software such as the one offered by Sumac. These specialized packages offer an all-in one
solution, from member databases to fundraising programs to preparing financial information and
reporting functions:
Switching to Sumac has been one of the best decisions we have made as an
organization. It has allowed us to gain better control of our information and do a much
better job of connecting with our donors and volunteers. We love how easy it is to use
and how quickly new staff members and administrative volunteers are able to learn to use
1In the most basic terms, the Cloud refers to the Internet. When someone says, "I stored it in the Cloud," they mean they stored it
on an Internet service. For example, email or webmail services are in " the cloud." The Cloud or cloud computing refers to an
application that is hosted on or run on Internet servers. All the companies that have these services -- Google, Facebook, Yahoo,
Flickr and Apple -- have servers or server farms. That's where your media is actually stored. (Stern, 2012)
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Sumac effectively. This means a huge savings in the time and money related to training
compared to other donor databases we have used.
Executive Director,United Way of Lethbridge and South Western Alberta (Sumac,
2014)
Crowdsourcing
According to McMillan Dictionary, Crowdsourcing is trying to find a way of
completing a task, a solution to a problem, etc. by asking a wide range of people or organizations
if they can help, typically by using the Internet.(Maxwell, 2009)
Crowdsourcing is the next evolution of outsourcing. Whereas the latter speaks of
sending work or functions to a particular company or organization to do for you (because they
can do it better or faster or cheaper or all three), crowdsourcing engages anyone who cares to be
engaged in helping solve a problem, generate ideas, mobilize a volunteer effort, or fund
something money is needed forand much more. Todays non-profit sector is uniquely
situated to take advantage of crowdsourcing as a method of raising revenues and / or awareness
of issuesSumOfUs.org and Kiva are two examples of the new modern organizations / social
movements that take advantage of crowdsourcing.
Crowdsourcing is made possible by the Internet and the myriad social media tools and
sites that can serve to engage people from around the world or at least people that may not have
any relationship locally in a non-profitsorganizations cause or work. Crowdsourcing also
speaks to making sure there are a lot of choices to people in terms of how they might lend a
hand. The crowd after all is looking for many things, not just one cause. SumOfUs.org is one of
the organizations that offer to promote a number of different noteworthy causes.
http://sumac.com/united-way-of-lethbridge-and-south-western-albertahttp://sumac.com/united-way-of-lethbridge-and-south-western-albertahttp://sumac.com/united-way-of-lethbridge-and-south-western-albertahttp://sumac.com/assetswp/clients/c-United-Way-LSWA_-Logo.jpghttp://sumac.com/united-way-of-lethbridge-and-south-western-alberta8/11/2019 Not Your Father's NPO
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From a fundraising perspective, crowdsourcing is related to micro-donations (a very
small sum of money donated to a charitable cause by millions of people. All the small sums can
add up to the desired total amount (Maxwell, 2009). This thread is expanded upon when we
discuss Kiva, a non-profit organization that works with microfinance institutions throughout the
world and their mission to connect people through lending to alleviate poverty.
Methods of raising money through micro-donations include text messaging fundraising
programs arranged with a cellular provider, via Twitpay (a software protocol that allows
individuals and organizations to transfer money directly over Twitter), but also via websites like
Donorschoose.org and others.
Social Media
Much has been said about Facebook, the online social media juggernaut. To many
people, Facebook isthe internet. Some of the peer-reviewed research that was used in creating
this paper is between 5 and 10 years oldFacebook was created in 2004 and has skyrocketed in
acceptance and general use in the last 8 years since the requirement for a school- or workplace-
issued email account was dropped. It now has over 1.3 billion active users. Between 2012 and
2013 Facebook users increased 22% (StatisticBrain, 2014); this research could not have
anticipated the enormous impact Facebook has had on todays society. Facebook has dedicated
resources available to non-profits in order to help them get their message out (FaceBook, 2013).
According to the 2012 Non-profit Social Networking Report, 98% of the survey respondents
have endorsed Facebook as their social network of choice (Berry, 2012).
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Twitter is a free micro-blogging tool: The maximum message you can send is 140
characters. Twitter officially debuted on March 21, 2006, when founder Jack Dorsey published
the first-ever tweet. It simply stated: "just setting up my twttr." When it first came about, nobody
really knew what it was. Even Evan Williams, one of Twitter's co-founders, said in aninterview
withInc.that few people were clear about Twitter's purpose. "They called it a social network;
they called it microblogging, but it was hard to define, because it didn't replace anything."
(Lapowsky, 2013)
The appeal of Twitter is its immediatenessfollowers are immediately updated on events
of interest to them. In March 2007, Twitter exploded at SXSW Interactive, a festival held each
year in Austin, Texas, focusing on emerging technology and considered a breeding ground for
new ideas and technologies; many SXSW attendees were early adopters of the web, and found
immediate benefit to Twitter's short-form public messaging. It was the perfect venue to find
information about panels, meetings, dinners and, of course, parties. Its popularity soon spread to
the web at large; there were around 400,000 tweets per quarter in 2007. In 2008, that number
grew to nearly 27 million (Lee, 2014). In 2013, that number rose to 58 million per day (Statistic
Brain, 2014).
There are a number of useful guides set up for non-profits to make the best use of
Twitter; most of the advice is how to engage and retain your audience. Lethbridge Folk Club ( a
non-profit organization dedicated to promoting live music in the singer-songwriter, blues and
bluegrass vein) sends out tweets reminding people ofupcoming concerts. They also retweet
concerts in other areas such as Medicine Hat and Bragg Creek.
Potential (and Real) Uses of New Technology
Social MovementsSumOfUs.org & Change.org
https://twitter.com/jack/status/20http://www.inc.com/welcome.html?destination=http://www.inc.com/issie-lapowsky/ev-williams-twitter-early-years.html?cid=em01011week40day04bhttp://www.inc.com/welcome.html?destination=http://www.inc.com/issie-lapowsky/ev-williams-twitter-early-years.html?cid=em01011week40day04bhttp://www.inc.com/welcome.html?destination=http://www.inc.com/issie-lapowsky/ev-williams-twitter-early-years.html?cid=em01011week40day04bhttp://www.inc.com/welcome.html?destination=http://www.inc.com/issie-lapowsky/ev-williams-twitter-early-years.html?cid=em01011week40day04bhttp://www.inc.com/welcome.html?destination=http://www.inc.com/issie-lapowsky/ev-williams-twitter-early-years.html?cid=em01011week40day04bhttp://www.inc.com/welcome.html?destination=http://www.inc.com/issie-lapowsky/ev-williams-twitter-early-years.html?cid=em01011week40day04bhttps://twitter.com/jack/status/208/11/2019 Not Your Father's NPO
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Crowdsourcing is the main factor behind the success of organizations such as
SumOfUs.org and Change.org. From the SumOfUs.Orgs web page, SumOfUs.org is a global
movement of consumers, investors, and workers all around the world, standing together to hold
corporations accountable for their actions and forge a new, sustainable and just path for our
global economy(SumOfUs.Org, 2014). From Change.orgs web site Change.org is the worlds
largest petitionplatform, empowering people everywhere to create the change they want to see.
(Change.Org, 2014) Both of these organizations are transnational in nature although they are
registered as non-profit organizations in the USA.
There is no cost to post your petition for change or to request a campaign. Change.org
gets their funding from sponsored petitions similar to sponsored videos on YouTube or
sponsored links on Google. Most of the sponsors are non-profit organizations such as Doctors
without Borderswhile SumOfUs.org relies on supporter donations.
These organizations rely exclusively on technology for everyone from individuals to
large non-profits to raise money and awareness of issues. They use web sites, Facebook pages,
email-mails and twitter feeds to promote their message. The downside to non-profits hoping to
use these social movement organizations to promote their cause or to raise funds is simply the
sheer volume of petition requests on these sites. Change.org offers guidelines on how to write
successful petitions (Change.Org, 2014) (as does SumOfUs.org ) in order to use the power of
crowdsourcing and social media more effectively.
Kiva
Kivais a Swahili word meaning "agreement" or "unity." (Kiva, 2014) Kiva is a non-
profit organization whose mission is to alleviate poverty through lending. It uses crowdsourcing
as its main method of collecting funds to disburse to its field partners. These field partners
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include microfinance organizations, social businesses, schools and non-profit organizations. The
field partners disburse loans and upload the stories to the Kiva web site. This is the point where
the crowdsourcing comes inlenders browse the profiles (loan requests) and lend money to the
ones they want to fund. Lenders can lend in increments of $25. Kiva aggregates funds from the
lenders and providers them to the field partners to replenish the loans they already made.
Borrowers repay the loans and then Kiva provides the repayments to the lenders accounts,
where the money is held until it can be lent out again.
Kiva provides the lenders constant updates through email. There are also a number of
apps that can be used to visually present the data to give a more meaningful experience for the
lender. The following illustration is a representation of the loans made by a charitable
organization as part of its mission to help people in need.
Figure 2- Kiva loans made by the Unitarian Universalist Fellowship of Lethbridge
Source: http://kiva-loans.herokuapp.com/uusof3647
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Kiva also uses Facebook and Twitter to interact with its supporters. Supporters can
comment on the various loan offerings and read about new success stories.
Traditional Large Non-Profits
Non-profit organizations that we are most familiar with such as the Red Cross, United
Way, Big Brothers and Big Sisters, Amnesty International, Greenpeace and Oceana have
excelled at their integration of technology, specifically social media technology, into raising
awareness of their issues and raising funds to further their cause.
Amnesty International
One of the most recognizable non-profits in the world, Amnesty International has found
success with social media by mobilizing their large support base and wielding their influence to
make change.
Amnesty International uses their social profiles to encourage politicians and lawmakers
to support their issues. By tweeting in front of their nearly 100,000 Twitter followers, it also puts
pressure on the politician since it is done in front of such a large audience.
Content is well-coordinated across different social platforms, which increases the number
of people a message gets in front of and can potentially increase involvement. For example, on
the same day that they tweeted Alistair Burt, a United Kingdom Conservative MP, regarding the
signing of an arms treaty, Amnesty International posted about the same issue on its Facebook
page (Green, 2013).
Amnesty International also likes their regional offices in Facebook, which increases
local support for these regional offices by letting supports know about them.
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Greenpeace
Greenpeace, like Amnesty International, uses social media to call out corporations and
politicians. Greenpeace is a strong believer in social mediathey credit much of their success to
the use of Twitter and Facebook in getting their message out. In one success story, they
pressured the supermarket chain Waitrose to cut its ties with Shell after getting 40,000 people to
sign a petition.
In yet another campaign aimed against Shell, Greenpeace teamed with other anti-Shell
groups and hijacked the oil companys identity on a microsite called Arctic Ready: Here, it
appeared the companys social media efforts had gone off the rails when fake user-generate anti-
Shell ads started appearing on the microsite. A fake Twitter account appeared to be Shell trying
to do damage control, but this was really the environmental groups. The hoax attracted a lot of
media attention, so while the campaign was controversial, it succeeded at getting Greenpeaces
mission in the spotlight (Green, 2013).
Greenpeaces regional sites also have a large number of followers: providing additional
social profiles for certain regions allows non-profits to focus on the issues that matter most to
that areas population.
Oceana
The increasingly visual aspect of social media works in favor of non-profits who can say
1,000 words with an image. Oceana is one such non-profit capitalizing on reaching supporters
through visualizations.
On all of their social profiles, Oceana uses strong imagery to get their supporters
attention. Since they are advocates of marine life protection, sharing related photos and videos is
an effective way to tug at supporters heartstrings.
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After releasing the findings of a seafood study, Oceana took it one step further and
created visuals to share on their social profiles. By linking to a related petition within the image
caption, they received a surge of support; almost 200 of their followers shared the image, which
greatly increased its reach (Green, 2013).
Small local (Lethbridge) non-profits
Lethbridge Folk Club
Lethbridge Folk Club has been active for almost 30 years, but has only recently waded
into the arena of social media. For years they had a basic web site listing their concert
information and special events (Open Mike, Bluegrass Circle, etc.). Hyperlinks allowed the
website viewers to get more information about the individual artists if the artists had web pages
of their own. Recently they have created a Facebook page and a Twitter account. The Facebook
page is updated regularly with concert and special event information.
Photos of concerts are uploaded shortly after the event. Starting approximately two weeks
before the concert, tweets are sent out informing people of the upcoming concert. Tweets from
other venues are also re-tweeted on a regular basis and they have seen that these clubs
reciprocate as well. The result is that attendance at the concerts and special events have increased
substantially (over 50%) for most events; supporters have increased and more people are
becoming aware of this venue.
They have updated their web site to use WordPress, a blogging tool. It is not used to its
fullest potential and again the web site is fairly stagnant. Much more can be done, but training
and time are the biggest issues preventing this from happening.
While the move to utilize social media has increased their supporters, they feel more can
be done; most concert notices still go out via targeted emails, but the emails are usually plain
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text. Lethbridge Folk club is entirely run by volunteers and the job of monitoring and
developing their social media presence is too large for one volunteer.
Unitarian Universalist Fellowship of Lethbridge (UUFL)
UUFL is a small charitable religious organization in Lethbridge. They maintain a web
presence and have a Facebook page. The information on the Facebook page is updated
frequently, but there is not much interaction from the supporters (no active discussion threads).
The web site is not updated on a regular basis and sometimes the information is outdated. As
with the Lethbridge Folk Club, this organization is run entirely by volunteers, none who have
very strong skills in social media; time and training are the issues again.
They utilize back office software such as Simply Accounting and Microsoft Office Suite
to prepare professional reports and bulletins and are now considering a move to Sumacs CRM
software to integrate all the various information they have with their supporters; currently none
of their databases are integrated and there is a large degree of duplication. With the CRM
software, they hope to have one database for the members, supporters, and other followers
(people who may visit their Facebook page regularly but who do not go to any services, etc.)
Impediments to implementation
The John Hopkins study TheNon-profit Technology GapMyth or Reality highlighted
some important impediments to implementation in graphical form, as can be seen in figure3. We
will look further into some of the three areas: resources, knowledge, and resistance to change.
Resources
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Resources include time, personnel and equipment (including the cost of any related
software). In order to be effective, organizations need to have trained personnel, whether the
personnel are volunteer or paid. Unfortunately, training, technical assistance and maintenance of
information technology are issues that are less likely to receive funding given the long-term
nature of such support (Hackler & Saxton, 2007).
Figure 3Major obstacles/challenges to increasing the use of information technology for program and service delivery
Source: The John Hopkns Non-profit Listening Post Project Information Technology Sounding, 2009
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Equipment and software resources are much less of an issue in 2014 than in 2003. Today
a new desktop or laptop computer costs around $400, whereas back in 2003 the cost was closer
to $800. Today software such as Microsoft Office and Sumac CRM is available for free to
qualifying organizations; other software such as Sun Office is free for non-commercial use. Back
in 2003 when Jo Anne Schneider reported on small, minority-based non-profits in the
information age, such software was not readily available, or if it was, it was not user friendly.
She reports:
The information superhighway is a limited-access system not available to small
non-profits, which lack the technology and expertise to obtain computerized
information Small non-profits cannot afford adequate technology; instead, they
choose limited computerized systems to fit budgets and agency knowledge, and
they need training to use systems effectively. Because information systems are
secondary to mission, small NPOs do not give them the priority needed to
effectively develop tools that can aid agency activities.(Schneider, 2003)
While much of her report rings true even today, the cost barrier of adequate equipment
and software for a non-profit organization to successfully integrate technology into furthering
their mission has been significantly reduced.
Even though the cost of equipment is lower, funding for equipment is still an issue as can
be seen in the graph, coming in as the number one impediment. Lack of time and no IT staff are
reasons two and four, respectively (Geller, Abramson, & de Leon, 2010).
Knowledge
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Lack of expertise, or knowledge, is the third largest obstacle in the Hopkins study
(Geller, Abramson, & de Leon, 2010). The Schneider report also lists lack of knowledgeable
staff as one reason why small non-profits are often marginalized (Schneider, 2003).
Resistance to change
It is interesting to note that 7 of the 17 obstacles mentioned by the Hopkins report refer to
resistance by stakeholders. Even though this resistance is only between 1128 %, if resistance is
met by one or more groups, the implementation of new technologies can face considerable
obstacles.
Strategies for Implementation
In order for a non-profit organization to successfully use new technology, a planned,
concerted effort must be made. According to Julie Dixon and Denise Keys in their Winter 2013
article for the Stanford Social Innovation Review The Permanent Disruption of Social Media,
donor behavior and how people interact with non-profits has changed. When organizations
emphasize financial donations as the primary means of support, they may be doing so at the risk
of discouraging other types of supportive activitiesmany of which have the ability to expand
significantly the influence of supporters, and therefore increase the contributions of others (Keys
& Dixon, 2013).
Convio, a CRM software and services management company that focuses on helping
non-profits, has published a guide on how to successfully use social media. The first step is to
evaluate the objectives for getting into social mediabuild awareness, drive action, or advance
engagement, and then evaluate the target audiencehow engaged is the target audience with the
organizationwould there be greater engagement through social mediahow does the target
audience currently use social media?
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The next step is to critically evaluate the organization and talk with stakeholders in the
organization before investing in a social media initiative, such as:
Make a list of everyones concerns and discuss how they could impact the organization;
Put togetheran agreed upon response protocol when confronted with these concerns;
Share examples of how other organizations have addressed similar situations.
Third, invest in time and training - while most social media tools are free to use, the time
staff members / volunteers spend using those tools is not. Allocating appropriate time to
managing social media efforts is necessary and varies depending on objectives. Expect to take
time to gain support and expect a learning curve.
Finally, once the social media is in place, listen to the supporters, share valuable content
and stay engaged with the supporters.
Conclusion
Using new technologies, such as Web 2.0, social media, and new-and-improved back-
office Customer Relationship Management tools specifically designed for non-profits, can and
does help non-profits increase public awareness of their issue and increase the ability to raise
funds to support their mission when used correctly. Non-profits must take the time to master the
new technologies available to them; they must overcome the hurdles in their path. There are
many low-cost alternativesnew technology does not have to be expensive. Reluctant boards
must be convinced traditional methods no longer are sufficient in todays electronic and
connected world. The type of support and action that used to take a non-profit months to
organize can be done in a matter of days (or hours!) with social media. With a smartphone or
ultrabook etc., non-profit supporters can stay connected 24/7 to the causes that matter most to
them.
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This can be achieved by using strategies such as simply following the guidelines and
helpful hints that are readily available to non-profits; as well as identifying the organizations
objectives and target audience and how social media will bring the two together. Non-profit
stakeholders must be made to realize that this is not your fathers non-profit organization!
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